In the latest volume of the BRAND magazine, Shabri Abd. Majid, Hasan Basri, Eka Nopita, and Heru Fahlevi bring into light cultural and sociological aspects which are influencing the performance of internal auditors in Aceh, Indonesia. They conducted a research based on a survey distributed to the entire population and the results were analysed using the Structural Equation Modelling (SEM) technique.
The on growing issue of defective bureaucracy in Indonesia led to multiple complaints from the people. This study shows that the efficiency of the government in Indonesia is when compared to neighbouring countries, falling far behind.
Another research conducted in 2014 has shown that the Republic of Indonesia deals with big problems concerning the bureaucracy. One of the reasons which determine this state of instability is represented by the inadequate staff of the local and governmental organisations.
It becomes more frequent for the staff to leave the public institutions when promoted rather than accepting new positions. Denison and Mishra conducted a study in 1995 which proved that the performance of a public organisation is tightly linked to the leaders’ capacities and skills, as this role is meant to create powerful bonds between the employees.
Taking into consideration the above-mentioned information, this research is meant to prove the following ideas: the first one is the effect of corporate culture, style of leadership and an accountant’s working place on the organisational commitment of an internal auditor. The second one highlights how much the organisational culture, leadership style, functional position of an auditor directly influence the organisational commitment on the internal auditor performance. And the last one will concentrate more on the indirect effect of organisational culture, leadership style, and functional position of an auditor through the organisational commitment on the internal auditor performance.
It is rather astonishing that the research has distributed the questionnaire to the whole population of internal auditors from the Province of Aceh, Indonesia (21 out of 23-district government internal auditors). The fact that the number of auditors in Indonesia is not very large made this research possible and extensive. The method used was Likert scale and Structural Equation Modelling (SEM) to analyse examples using the Analysis of Moment Structure (AMOS) program.
Nonetheless, this research is not as broad as it should be, in order to fully support the thesis on every level of an organisation. This occurs because the survey was distributed only to internal auditors, overlooking the opinion of the auditors with a structural position. Another neglected issue in this research is other influences except those mentioned in the thesis that might affect the performance of the internal auditors. Also, due to the fact that 21 districts GIA in the Province of Aceh are situated very far from another, this study does not demonstrate the auditor’s performance based on the auditor leaders’ perception.
Regardless of the limitations, the conclusion indicates the fact that public organisations should take in consideration creating an established procedure of solving issues – regarding some indicators for each variable with the lowest average scores, for leadership style, and position hierarchy and rank for the auditor functional position – to be used by the internal auditors.
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